March SBA Lenders Update Highlights:

SBA 504 Rates Fall to Record Lows: 5.19% - 5.94%

20-year Fixed Rate Effective March 11 – April 11, 2003.
Effective Rate: 5.94%, (1^st 5 years: 5.81%)
Note Rate: 4.57%
Debenture Rate: 4.50%

10-year Fixed Rate Effective March 11 – May 11, 2003.
Effective Rate: 5.19%, (1^st 5 years: 5:00%)
Note Rate: 3.54%
Debenture Rate: 3.39%

Congress Seeks Lower 504 Fees
Congress last month directed SBA to use a new econometric model to determine the subsidy rate for the 504 loan program, finding that SBA has overestimated the default rates for loans. A new subsidy rate will enable SBA to reduce 504 borrower fees next year. Full Text.

Florida First Capital Expands into Dixie County
SBA has authorized Florida First Capital to do business in Dixie County. FFCFC now serves 60 of Florida’s 67 counties, the largest geographic coverage of any certified development company in Florida. Full Text.

SBA Lifts Cap on 7(a) Loans
SBA removed its $500,000 cap on 7(a) loans last month after President Bush signed legislation that allows the agency to lower the subsidy rate. The reduction will enable SBA to approve an additional $3.4 billion in 7(a) loans this year. Full Text.

SBA Increases Competition by Expanding 7(a) to Credit Unions
SBA last month announced that it has expanded the 7(a) loan guarantee program to include credit unions. The move is seen as part of its current mission to become more “customer-centric” by reaching out to smaller business, and it will certainly ratchet-up competition for many lenders. Credit unions can already participate in SBA 504 loans. Full Text.

SBA News

SBA, DOL Launch Web Site for Woman-Owned Businesses
SBA and the Department of Labor recently announced the launch of www.women-21.gov, a new Web site to help women small business owners deal with the ever-changing business climate and identify federal government resources for women. Link to SBA News Release

Florida First Capital, the State of Florida's Certified Development Company, provides financial assistance to small businesses in conjunction with the U.S. Small Business Administration and private sector lenders. From Pensacola to Key West, Florida First Capital provides new and growing businesses with long-term, fixed-rate financing for major fixed assets, such as real estate and equipment. For more information visit our website at ffcfc.com or call us at 1-888-320-5504 or email us at: info@ffcfc.com

To be removed from this e-mail distribution list, reply to this e-mail with “remove” in the subject line.